The Economic Impact of the Duluth School District's Long Range

Research Report

The Economic Impact of the Duluth School District’s Long Range Facilities Plan (Red Plan) on the Duluth‐Superior, MN‐WI Metropolitan Statistical Area

June 2009

For

Duluth Area Chamber of Commerce

NOTE AN ACROBAT PDF OF THIS REPORT AT: https://lsbe.d.umn.edu/departments/bber/bber_projects.php and at: http://www.duluthchamber.com/

Research Team

UMD Labovitz School of Business and Economics Bureau of Business and Economic Research James A. Skurla, Acting Director Jean Jacobson, Senior Editor Taha Kasim, Undergraduate Research Assistant Lyle Solem, Undergraduate Research Assistant Vickie Almquist‐Minko, Executive Administrative Specialist Bureau of Business and Economic Research 213 Labovitz School of Business and Economics 1318 Kirby Drive University of Minnesota Duluth Duluth, MN 55812 (218) 726‐8614 http://www.d.umn.edu/lsbe/bber.php

Project Contact David Ross Duluth Area Chamber of Commerce 5 West First Street Suite 101 Duluth, MN 55802 218.740.3751 [email protected]

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Table of Contents Research Team ...... i Executive Summary ...... iv I. Project Description ...... 1 Scope of Work ...... 1 The Study Area ...... 2 II. Impact Procedures and Input Assumptions ...... 2 IMPLAN Models ...... 2 Data ...... 3 Definitions Used in This Report ...... 3 Model Assumptions ...... 4 Project Time Lines ...... 4 III. Construction Impacts ...... 5 IV. Real Estate Impacts ...... 7 V. Closed Schools: Future Development Alternatives ...... 9 Irving School ...... 9 Chester Park School ...... 9 Washington School ...... 9 VI. Conclusions ...... 11 References ...... 12 Appendix: Secondary Employment Impacts of Red Plan Construction on the Duluth‐Superior MSA, 2008 ...... 13

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Table of Tables

Table 1. Construction Impacts 2008–2012 ...... 5 Table 2. Peak Year Construction Impacts 2010 ...... 6 Table 3. Top Ten Additional Indirect and Induced Jobs Dependent on Construction ...... 6 Table 4. Top Ten Local Suppliers to Construction by Percent of Total Regional Input ...... 7 Table 5. Real Estate Impact Model Inputs ...... 7 Table 6. Real Estate Impact Model Inputs: Expenditures ...... 8 Table 7. Real Estate Impact Model Inputs: Expenditures in 2007 $ by IMPLAN Sector ...... 8 Table 8. Real Estate Impacts in 2007 $ ...... 8 Table 9. Proposed Development Opportunities ...... 10 Table 10. Total Construction Impacts by Year 2008–2012 ...... 11 Table 11. Real Estate Impacts in 2007 $ ...... 11

Table of Figures

Figure 1. Duluth MN‐WI Metropolitan Statistical Area (St. Louis, Carlton, and Douglas Counties) ...... 2 Figure 2. BBER’s Assumptions for Construction Project Time Lines ...... 4 Figure 3. Construction Projects Proposed by Year...... 4

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

iii

The Economic Impact of the Duluth School District’s Long Range Facilities Plan (Red Plan) on the Duluth‐Superior, MN‐WI Metropolitan Statistical Area

Executive Summary Construction Project Time Lines Estimates The Bureau of Business and Economic Research (BBER) was asked to estimate the economic impact of the Red Plan on the Duluth‐Superior Metropolitan Statistical Area (MSA). The research objectives of the study included construction impacts, property acquisition impacts, and future development. The study area was defined as Wisconsin’s Douglas County, and Minnesota’s Carlton and St. Louis Counties.

Construction Impacts: Project Time Lines for this impact were estimated from 2008 to 2012 and totaled $285,200,000.

Construction Impacts 2008–2012 Source: IMPLAN; Direct Indirect Induced Total Johnson Controls, Inc.; BBER 2008 Value Added $4,722,336 $1,604,117 $1,681,588 $8,008,041 Output $10,867,848 $3,517,850 $3,102,733 $17,488,431 Employment 96 25 31 152 2009 Value Added $24,821,586 $8,431,573 $8,838,777 $42,091,936 Output $57,123,688 $18,490,555 $16,308,617 $91,922,860 Employment 503 131 163 797 2010 Value Added $49,792,048 $16,913,717 $17,730,567 $84,436,332 Output $114,589,992 $37,092,012 $32,715,049 $184,397,053 Employment 1,009 263 327 1,599 2011 Value Added $33,397,404 $11,344,668 $11,892,561 $56,634,633 Output $76,859,832 $24,879,012 $21,943,218 $123,682,062 Employment 677 176 219 1,072 2012 Value Added $6,491,951 $2,205,232 $2,311,734 $11,008,916 Output $14,940,389 $4,836,104 $4,265,430 $24,041,923 Employment 132 34 43 209

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Note: Definitions of economic impact measures (Value Added—earnings, Output—sales, and Employment—jobs), as well as direct and secondary impact effects (Direct, Indirect, and induced) are provided in the body of following report.

In the peak year of proposed construction activity, projected to be the year 2010, the impact on the MSA economy is expected to show earnings from Red Plan construction projects totaling more than $84 million, sales of more than $184 million, and an estimated 1,599 jobs created.

A secondary impact of Red Plan construction will be felt by MSA industries dependent on construction. The most important additional jobs are estimated to be the following:

Top Ten Additional Indirect and Induced Jobs Dependent on Construction Industry Direct Indirect Induced Total Construct other new nonresidential structures 96 0 0 96 Architectural‐ engineering‐ and related services 0 8 0 8 Food services and drinking places 0 1 4 5 Wholesale trade businesses 0 1 1 2 Private hospitals 0 0 2 2 Retail Stores ‐ General merchandise 0 1 1 2 Retail Stores ‐ Food and beverage 0 1 1 2 Offices of physicians‐ dentists‐ and other health 0 0 2 2 Retail Nonstores ‐ Direct and electronic sales 0 0 1 2 Automotive repair and maintenance‐ except car wash 0 1 0 1 And 30 more jobs in 24 other sectors of the MSA economy Total 96 25 31 152

Local suppliers to the construction industry will also be affected. The top industries affected include the following. Top Ten Local Suppliers to Construction by Percent of Total Regional Input Architectural‐ engineering‐ and related services 28.9% Petroleum refineries 15.9% Wholesale trade businesses 6.3% Transport by truck 4.0% Automotive repair and maintenance‐ except car wash 3.3% Commercial and industrial machinery and equipment 2.6% Monetary authorities and depository credit 2.5% Commercial and industrial machinery and equipment 2.2% Other commercial and service industry machinery mfg 2.0% Wood windows and doors and millwork mfg 1.9% And another 18.6% of inputs from various other local suppliers

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Property Acquisition Impacts: Expenditures related to proposed property acquisition were estimated and provide assumptions for modeling this impact.

Three sector categories of impact were modeled: 1) combined impacts of expenditures less new home purchases, 2) demolition expenses, and 3) moving expenses. Given these inputs to the model, total real estate impacts were estimated as follows:

Real Estate Impacts in 2007 $ Combined impacts of expenditures less new home purchases, and the impact of demolition expenses, and the impact of moving expenses. Direct Indirect Induced Total Value Added $1,088,181 $182,010 $133,192 $1,403,383 Output $1,682,271 $366,030 $245,747 $2,294,048 Employment 8 3 3 14

Future Development: Three recent developments were highlighted to show possibilities for converting school property to other community assets: Irving Elementary, Chester Park Elementary, and Washington Jr. High.

Irving Elementary. Built in 1891 and opened for classes in 1893, the Irving school closed in 1982. The Duluth School District sold the building to a private developer, who ran out of funds. The Alexander Company, Inc. acquired Irving in 1992. A $4 million renovation project converted it into a 44‐unit apartment complex. Upper Minnesota Properties, a subsidiary of Minnesota Power, assumed ownership on May 6, 1994.

Chester Park Elementary. The Duluth School Board voted to close Chester Park in 2008. The University of Minnesota purchased the Chester Park School and paid the school district $1.2 million. UMD plans to use the building for academic and administrative purposes. An estimated Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

completion date is Winter of 2009. The estimated investment: $5.4 million.

Washington Jr. High School. This school was sold by the School District to the City of Duluth for $1. This example shows how reuse of an existing building helped reduce costs for the developer, relieved the school district of the costs of an unused building. Goals were to create affordable apartment space with rental rates that were comparable to those in the neighborhood. Conversion investment: total costs of almost $7.4 million.

Conclusion: Construction economic impacts from the Duluth School District’s Long Range Facilities Plan have an output multiplier effect of 1.61. This means that for every dollar of expenditure created by construction activity on Red Plan projects, another $0.61 is created as a secondary impact in the MSA economy. It is expected that the Red Plan construction spending of more than $58 million in 2009 may help offset the current economic recession.

The impact of real estate activities related to the Red Plan has an output multiplier estimated at 1.36. This multiplier estimates that for every dollar of expenditure, another $0.36 is generated in the MSA economy. Red Plan property acquisition is expected to result in as much as $4.25 million in real estate purchases.

The total impact from construction and property acquisition is estimated from the IMPLAN model as follows: The direct construction output spending (2008–2012) of more than $274 million (in 2007 dollars) could deliver an economic impact of almost $442 million. The dollars expended on property services of more than $1.6 million (in 2007 dollars) could deliver an economic impact of almost $2.3 million to the metropolitan area.

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

vii

The Economic Impact of the Duluth School District’s Long Range Facilities Plan (Red Plan) on the Duluth‐Superior, MN‐WI Metropolitan Statistical Area

I. Project Description The Bureau of Business and Economic Research (BBER) at the University of Minnesota Duluth Labovitz School of Business and Economics (LSBE) was asked to estimate the economic impact of the Duluth School District’s Long Range Facilities Plan (Red Plan) on the Duluth‐Superior Metropolitan Statistical Area (MSA). BBER modeled the economy of the MSA in order to assist the community to understand the economic impact of the proposed Red Plan. BBER was also asked to describe the Plan in terms of possible economic development. With this report, the Labovitz School’s research bureau hopes to provide clarity about the proposed plan’s economic impact. BBER also hopes to contribute to the community’s understanding and expectations about changes related to the Duluth School District’s facilities.

Scope of Work The economic modeling data and software used was IMPLAN. The study used IMPLAN’s economic multiplier analysis and input/output modeling, created in Minnesota by the Minnesota IMPLAN Group, Inc. The most recent county IMPLAN data is for year 2007. Based on the Duluth Public Schools Design and Construction Schedule, BBER estimated the project’s economic impacts over the four‐year construction period. BBER took into account the budget neutral effects of the funding of the Red Plan. The research objectives of the study included the following: • This project will measure the direct impact on the community of Duluth and the MSA, and include—from the directives of the Plan—the hiring of local design teams, construction workers, and others. • Modeling the Plan’s economic impact will take into account the fact that implementation started in 2008. The deliverables for this project include the following: 1) BBER will model the economic impact of the Duluth District’s Long Range Facilities Plan. 2) BBER will present its economic impact findings in a printed report. 3) BBER will present the findings of the report in a PowerPoint slide presentation, if so requested. The BBER worked closely with Johnson Controls and the Duluth School District. County data for the impact models for Value added, Employment, and Output measures were supplied by IMPLAN for this impact. Employment assumptions were provided to the researchers to enable building of the impact model. All study definitions and impact model assumptions were agreed on before work with the models began.

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

The Study Area The geographic scope for this economic impact analysis was proposed to be the Duluth‐Superior, MN‐WI Metropolitan Statistical Area, which is comprised of St. Louis, Carlton, and Douglas Counties. Figure 1. Duluth‐Superior, MN‐WI Metropolitan Statistical Area (St. Louis, Carlton, and Douglas Counties)

II. Impact Procedures and Input Assumptions BBER used inputs from the Duluth School District and entities involved in school employment and construction, as well as estimates of construction projects start and end dates. From the District or its contractors, BBER was provided with estimates of percentage of local inputs for labor and supplies for construction. Models were created for the scenarios contingent on the District’s Plan.

IMPLAN Models There are two components to the IMPLAN system, the software and databases. The databases provide all information to create regional IMPLAN models. The software performs the calculations and provides an interface for the user to make final demand changes. IMPLAN software version 2 was used in this analysis. Comprehensive and detailed data coverage of the IMPLAN study areas by county, and the ability to incorporate user‐supplied data at each stage of the model building process, provides a high degree of flexibility both in terms of geographic coverage and model formulation (in this case definition of the Duluth‐Superior MSA study area) and the definition of specific models for construction impacts.

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Data IMPLAN data files use federal government data sources including:

• US Bureau of Economic Analysis Benchmark I/O Accounts of the US • US Bureau of Economic Analysis Output Estimates • US Bureau of Economic Analysis REIS Program • US Bureau of Labor Statistics County Employment and Wages (CEW) Program • US Bureau of Labor Statistics Consumer Expenditure Survey • US Census Bureau County Business Patterns • US Census Bureau Decennial Census and Population Surveys • US Census Bureau Economic Censuses and Surveys • US Department of Agriculture Crop and Livestock Statistics IMPLAN data files consist of the following components: employment, industry output, value added, institutional demands, national structural matrices and inter‐institutional transfers. Impacts for this model use the most recent IMPLAN data available, which is for the year 2007. The impacts are reported in 2007 dollars. Economic impacts are made up of direct, indirect, and induced impacts. The following cautions are suggested assumptions for accepting the impact model: • IMPLAN input‐output is a production based model. • Local or export based purchases that represent transfers from other potential local purchases are not counted. • The numbers (from U.S. Department of Commerce secondary data) treat both full and part time individuals as being employed. • Assumptions need to be made concerning the nature of the local economy before impacts can be interpreted. • The IMPLAN model was constructed for the year 2007 (most recent data available).

Definitions Used in This Report The IMPLAN models for both operations and construction use the following definitions for the three measures and three effects of the impact reports: Measures: Value Added—A measure of the impacting industry’s contribution to the local community; it includes wages, rents, interest and profits. Output—Represents the value of local production required to sustain activities. Employment—Estimates are in terms of jobs, not in terms of full‐time equivalent employees. Hence, these may be temporary, part time or short term jobs. Effects: Direct—Initial spending in the study area resulting from the project. Indirect—The additional inter‐industry spending from the direct impact. Induced—The impact of additional household expenditure resulting from the direct and indirect impact.

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Model Assumptions Project Time Lines for this impact were estimated from 2008 to 2012 and totaled $285,200,000. Construction years for various projects are staggered between 2008 and 2012. All impacts are reported in 2007 dollars. The following time line shows estimated yearly expenditures.

Project Time Lines Figure 2. BBER’s Assumptions for Construction Project Time Lines

Source: Johnson Controls, Inc.

The following lists show the estimated deployment of construction activity by year and by school. Figure 3. Construction Projects Proposed by Year 2012 2008 2009 2010 2011 ₋ Denfeld High ₋ Lakewood ₋ Eastern High ₋ Eastern High ₋ Eastern High

Elementary ₋ Western Middle ₋ Western Middle ₋ Western Middle ₋ Eastern Middle ₋ Historic Old ₋ Stowe ₋ Denfeld High ₋ Denfeld High ₋ Denfeld High Central High ₋ Laura MacArthur ₋ Laura MacArthur ₋ Congdon School Elementary Elementary Elementary ₋ Lester Park ‐ ₋ Lester Park ‐ ₋ Grant/Nettleton Rockridge Rockridge Elementary Elementary Elementary ₋ Lincoln Piedmont ₋ Eastern Middle ₋ Congdon Elementary ₋ Homecroft Elementary ₋ Eastern Middle

Elementary ₋ Grant/Nettleton ₋ Secondary Elementary ₋ Lowell Technical Center Elementary ₋ Lincoln Piedmont Elementary ₋ Homecroft Elementary Source: Johnson Controls, Inc.

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

III. Construction Impacts In the IMPLAN model, the construction sector of the Duluth‐Superior MSA economy follows the North American Industry Classification (NAICS). As noted by the Census, “The Construction sector comprises establishments primarily engaged in the construction of buildings and other structures, heavy construction (except buildings), additions, alterations, reconstruction, installation, and maintenance and repairs. Establishments engaged in demolition or wrecking of buildings and other structures, clearing of building sites, and sale of materials from demolished structures are also included. This sector also includes those establishments engaged in blasting, test drilling, landfill, leveling, earthmoving, excavating, land drainage, and other land preparation. The industries within this sector have been defined on the basis of their unique production processes. As with all industries, the production processes are distinguished by their use of specialized human resources and specialized physical capital. Construction activities are generally administered or managed at a relatively fixed place of business, but the actual construction work is performed at one or more different project sites.” The economic impact of adding more construction activity to the Duluth‐Superior MSA economy is presented in the following table, using the impact measures and effects defined on the previous pages.

When using these impact numbers, readers are cautioned to note that construction impacts for employment should not be summed over the span of years because jobs may be on‐going rather than cumulative. Table 1. Construction Impacts 2008–2012 Construction Impacts 2008–2012 Source: IMPLAN Direct Indirect Induced Total 2008 Value Added $4,722,336 $1,604,117 $1,681,588 $8,008,041 Output $10,867,848 $3,517,850 $3,102,733 $17,488,431 Employment 96 25 31 152 2009 Value Added $24,821,586 $8,431,573 $8,838,777 $42,091,936 Output $57,123,688 $18,490,555 $16,308,617 $91,922,860 Employment 503 131 163 797 2010 Value Added $49,792,048 $16,913,717 $17,730,567 $84,436,332 Output $114,589,992 $37,092,012 $32,715,049 $184,397,053 Employment 1,009 263 327 1,599 2011 Value Added $33,397,404 $11,344,668 $11,892,561 $56,634,633 Output $76,859,832 $24,879,012 $21,943,218 $123,682,062 Employment 677 176 219 1,072 2012 Value Added $6,491,951 $2,205,232 $2,311,734 $11,008,916 Output $14,940,389 $4,836,104 $4,265,430 $24,041,923 Employment 132 34 43 209 Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Note that the peak year for construction activity is projected to be the year 2010. In the peak year of proposed construction activity, projected to be the year 2010, the impact on the MSA economy is expected to show earnings from Red Plan construction projects totaling more than $84 million, sales of more than $184 million, and an estimated 1,599 jobs created.

Table 2. Peak Year Construction Impacts 2010 Peak Year Construction Impacts 2010 Source: IMPLAN Direct Indirect Induced Total Value Added $49,792,048 $16,913,717 $17,730,567 $84,436,332 Output $114,589,992 $37,092,012 $32,715,049 $184,397,053 Employment 1,009 263 327 1,599

A secondary impact of Red Plan construction will be felt by MSA industries dependent on construction. Indirect and induced jobs related to these impacts are presented in the following table. The most important additional jobs are estimated to be the following. (See the Appendix for the full table.)

Table 3. Top Ten Additional Indirect and Induced Jobs Dependent on Construction Top Ten Additional Indirect and Induced Jobs Dependent on Construction, 2008 Industry Direct Indirect Induced Total Construct other new nonresidential structures 96 0 0 96 Architectural‐ engineering‐ and related services 0 8 0 8 Food services and drinking places 0 1 4 5 Wholesale trade businesses 0 1 1 2 Private hospitals 0 0 2 2 Retail Stores ‐ General merchandise 0 1 1 2 Retail Stores ‐ Food and beverage 0 1 1 2 Offices of physicians‐ dentists‐ and other health 0 0 2 2 Retail Nonstores ‐ Direct and electronic sales 0 0 1 2 Automotive repair and maintenance‐ except car wash 0 1 0 1 And 30 more jobs in 24 other sectors of the MSA economy Total 96 25 31 152 Source: IMPLAN

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Local suppliers to the construction industry will also be affected. Industry requirements for construction activity are presented in the following table. The top industries impacted include the following:

Table 4. Top Ten Local Suppliers to Construction by Percent of Total Regional Input Top Ten Local Suppliers to Construction by Percent of Total Regional Input Architectural‐ engineering‐ and related services 28.9% Petroleum refineries 15.9% Wholesale trade businesses 6.3% Transport by truck 4.0% Automotive repair and maintenance‐ except car wash 3.3% Commercial and industrial machinery and equipment 2.6% Monetary authorities and depository credit 2.5% Commercial and industrial machinery and equipment 2.2% Other commercial and service industry machinery mfg 2.0% Wood windows and doors and millwork mfg 1.9% And another 18.6% of inputs from various other local suppliers Source: IMPLAN

IV. Real Estate Impacts Of all these expenditures, BBER estimated the impact from real estate in three sectors. The major impact is estimated from expenditures itemized in the Red Plan less the price of the new home purchase. A secondary impact is estimated from the expenditure for demolition of the residence. A final impact was estimated using the separate expenditure of moving costs for the residents.

Table 5. Real Estate Impact Model Inputs

Source: F. I Salter. Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

The following table shows detail for the components of the real estate expenditures, as published in the Red Plan. Table 6. Real Estate Impact Model Inputs: Expenditures Real Estate Impact Model Inputs: Expenditures in 2007 $ Expenditure Denfeld Laura Lester Park Grant Ordean Congdon Totals MacArthur Number of Properties 13 15 8 4 8 2 50 Appraisals $11,275 $16,375 $8,200 $4,900 $8,775 $2,850 $52,375 New Home Purchases $1,310,300 $1,163,800 $1,277,000 $175,000 $323,000 $0 $4,249,100 Demolition $188,500 $217,500 $116,000 $58,000 $116,000 $29,000 $725,000 Commission on New Purchases $54,318 $48,735 $63,850 $8,750 $16,150 $0 $191,803 Relocation PPD $38,535 $37,686 $115,850 $12,405 $24,930 $3,000 $232,406 Title/Closing Work $34,747 $27,562 $24,545 $9,806 $7,594 $4,702 $108,956 Cost avoidance Incentive $33,000 $42,000 $24,000 $12,000 $18,000 $6,000 $135,000 Moving Expenses $26,706 $37,686 $28,184 $8,050 $5,300 $4,450 $110,376 Incidentals $13,247 $8,551 $1,524 $710 $500 $500 $25,032 Mortgage Interest $6,680 $83,885 $0 $500 $1,816 $500 $93,381 Taxes Paid $1,851 $4,007 $1,060 $643 ($1) $382 $7,942 Total Expenditure $1,719,159 $1,687,787 $1,660,213 $290,764 $522,064 $51,384 $5,931,371 Source: Johnson Controls, Inc.

The model was constructed to estimate the combined economic impact of three impact events: the impact of expenditures less new home purchases, the impact of demolition expenses, and the impact of moving expenses, as shown in the following table.

Table 7. Real Estate Impact Model Inputs: Expenditures in 2007 $ by IMPLAN Sector

These events combine in the following estimated economic impact for the Duluth‐Superior MSA.

Table 8. Real Estate Impacts in 2007 $ Real Estate Impacts in 2007 $ Combined impacts of expenditures less new home purchases, and the impact of demolition expenses, and the impact of moving expenses. Source: IMPLAN Direct Indirect Induced Total Value Added $1,088,181 $182,010 $133,192 $1,403,383 Output $1,682,271 $366,030 $245,747 $2,294,048 Employment 8 3 3 14 Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

V. Closed Schools: Future Development Alternatives

Although a property‐by‐property study of possible impacts from the turn‐over of school buildings into structures for other purposes, under other management, is beyond the scope of this report, three examples of recent turn‐over may be of interest in hypothetically proposing what might happen to School District properties. The varied histories of school buildings shows how value can be retained for the community and conversion from school use to other uses can provide positive economic impact.

Irving School Irving Elementary School began construction in 1891 and opened for classes in 1893. The building was designed in the Renaissance‐Revival style by Duluth architects Emmet Palmer, Lucien Hall and William Hunt. Irving expanded in 1905 to include high school courses, serving as the predecessor to Denfeld High School. It was known for some years as Duluth Industrial High School. In 1915, Irving became a girls‐only junior high school. In 1926, Irving was returned to an elementary school. The school closed in 1982.

The Duluth School District sold the building to a private developer. The plan was for the building to house some small shops and apartments, but the developer ran out of funds. The Alexander Company Inc. acquired Irving in 1992. A $4 million renovation project converted it into a 44‐unit apartment complex. Upper Minnesota Properties, a subsidiary of Minnesota Power, assumed ownership on May 6, 1994. Currently, Irving School Apartments is listed in the Buildings in the National Register of Historic Places, Buildings of Local Significance.

Conversion investment: $4 million.

Chester Park School The Duluth School Board voted to close Chester Park in 2005. The boarded‐up 79‐year‐old, 63,375‐ square‐foot building at 31 W. College St. sat empty until the University of Minnesota Board of Regents facility committee voted unanimously to authorize purchasing the Chester Park School property from the Duluth school district. Under the deal, the university paid the school district $1.2 million for the 4.5‐ acre property. The University of Minnesota Duluth is north of the Chester Park building and already owns the former school’s parking lot. UMD plans to use the building for academic and administrative purposes. The estimated Completion Date is Winter of 2009.

Duluth Preservation Alliance 2009 awards recognized Chester Park School as “Work done: Exterior masonry cleaned, tuck‐pointed and waterproofed, reroofed. Inside, plaster repaired and floors refinished. In addition, UMD is recognized for sensitively handling controversial features of the front entry and for saving the building and finding an adaptive reuse for it.” (Duluth News Tribune, May 17, 2009)

Estimated conversion investment: $5.4 million.

Washington School The hundred‐year‐old Washington Jr. High School, sold by the Independent School District #709 to the City of Duluth, Minnesota, for a dollar, provides an affordable and well located place where artists can Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

both live and work. Located in a downtown Duluth neighborhood, the residents have access to mass transit systems, local art galleries, businesses, and the downtown retail area. In addition, Washington Center & Studios’ community center provides a gathering space for the neighborhood residents and has helped foster a stronger community spirit.

The reuse of an existing building and its site, versus developing a new site and creating a new building, helped reduce costs for the developer, relieved the school district of the costs of an unused building, and provided the city with a community center that had its own off‐street parking to alleviate parking congestion.

Exterior renovation including a complete window replacement, masonry repair and roof replacement inhibited further deterioration of the building shell. These improvements also improved the energy efficiency of the building envelope.

The goals of this project included revitalizing the neighborhood and bringing new life to a community landmark. These goals were accomplished by creating affordable apartment space with rental rates that were comparable to those in the neighborhood. A community recreational facility, cultural centers, affordable housing, and parking were all incorporated into this single facility. Conversion investment: total costs almost $7.4 million.

Table 9 shows opportunities that were identified in the Red Plan. The actual disposition will be determined by market conditions. Table 9. Proposed Development Opportunities Development Opportunities The following properties have been listed for disposal in the LRFP: Bldg. Sq. Land Disposition PROPERTY Ft. Area (acre) Value Ball Field (old Chester site) 3.09 $170,000 Central High School (& upper STC) 247,205 76.84 $10,000,000 Facilities Management Bldg. 23,390 0.48 $500,000 Garfield Avenue building 33,356 1.35 $800,000 Hartley Field property (unused) 29.61 $800,000 Kensington Place property, Arrowhead & Arlington 26.51 $600,000 Lincoln Park Elementary School 170,596 2.75 $610,000 Morgan Park Middle School 130,871 9.99 $465,000 Undeveloped Site 2.23 $35,000 Nettleton Elementary School 90,024 3.34 $480,000 Piedmont Elementary School 47,910 4.38 $280,000 Rockridge Elementary School 30,671 13.03 $1,780,000 Excess Land 5.46 $150,000 Woodland Middle School 120,207 17.72 $6,700,000 894,230 331.22 $23,370,000 Source: LRFP Review and Comment Document

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

VI. Conclusions The IMPLAN model calculates a multiplier effect to describe the rounds of spending or employment associated with the direct activity of the projects. For activity in 2008, for which the output (sales) multiplier is 1.61, this means that for every dollar of direct expenditure by construction activity on Red Plan projects, another $0.61 is generated as a secondary impact. In the same way, the employment (jobs) multiplier for construction on the Red Plan projects, is 1.58. This means for every construction job created, another .58 job is created. The 2008 value added (earnings) multiplier is 1.70. This means that for every dollar of earnings generated by the Red Plan projects, another $0.70 is generated as a secondary impact.

The following table shows the total economic impact of all measures (Value Added, Output, and Employment) and effects (Direct, Indirect, and Induced) of the impact analysis. The table also provides the average multipliers used in modeling the impacts. Table 10. Total Construction Impacts by Year 2008–2012 Total Construction Impacts by Year 2008–2012 Total Multiplier Total Multiplier Total Multiplier Year Value Added Output Employment 2008 $8,008,041 1.70 $17,488,431 1.61 152 1.58 2009 $42,091,936 1.70 $91,922,860 1.61 797 1.58 2010 $84,436,332 1.70 $184,397,053 1.61 1,599 1.58 2011 $56,634,633 1.70 $123,682,062 1.61 1,072 1.58 2012 $11,008,916 1.70 $24,041,923 1.61 209 1.58

The economic impact of real estate activities (expenditures less new home purchases, and the impact of demolition expenses, and the impact of moving expenses) is shown in the table below. The multipliers for these impacts are estimated at between 1.29 and 1.75 for the Value Added, Output, and Employment of these activities. Table 11. Real Estate Impacts in 2007 $ Real Estate Impacts in 2007 $ Combined impacts of expenditures less new home purchases, and the impact of demolition expenses, and the impact of moving expenses. Direct Indirect Induced Total Multiplier Value Added $1,088,181 $182,010 $133,192 $1,403,383 1.29 Output $1,682,271 $366,030 $245,747 $2,294,048 1.36 Employment 8 3 3 14 1.75

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

References

Duluth School District. Long Range Facilities Plan. http://duluth.mn.schoolwebpages.com/education/components/docmgr/default.php Maki, Wilbur R., and Richard W. Lichty. Urban Regional Economics: Concepts, Tools, Applications. February 2000. Iowa State Press. Miernyk , Willam. Elements of Input Output Analysis, New York, Random House, 1966. Miller, Ronald E., and Peter D. Blair. Input‐output Analysis: Foundations and Extensions, Englewood Cliffs, N.J. PrenticeHall, 1985 (out of print). Olson, Doug and Scott Lindall, “IMPLAN Professional Software, Analysis, and Data Guide,” Minnesota IMPLAN Group, Inc., 1725 Tower Drive West, Suite 140, Stillwater, MN 55082, www.implan.com.

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Appendix: Secondary Employment Impacts of Red Plan Construction on the Duluth‐Superior MSA, 2008 Secondary Employment Impacts of Red Plan Construction on the Duluth‐Superior MSA, 2008 Ranked by Total Impact IMPLAN Industry Direct Indirect Induced Total Sector 36 Construct other new nonresidential structures 95.7 0.0 0.0 95.7 369 Architectural‐ engineering‐ and related services 0.0 7.5 0.1 7.6 413 Food services and drinking places 0.0 0.9 4.1 5.0 319 Wholesale trade businesses 0.0 1.4 0.9 2.3 397 Private hospitals 0.0 0.0 1.8 1.8 329 Retail Stores ‐ General merchandise 0.0 0.5 1.3 1.8 324 Retail Stores ‐ Food and beverage 0.0 0.5 1.2 1.7 394 Offices of physicians‐ dentists‐ and other health 0.0 0.0 1.6 1.6 331 Retail Nonstores ‐ Direct and electronic sales 0.0 0.4 1.2 1.6 414 Automotive repair and maintenance‐ except car wash 0.0 1.0 0.3 1.4 398 Nursing and residential care facilities 0.0 0.0 1.3 1.3 320 Retail Stores ‐ Motor vehicle and parts 0.0 0.4 0.9 1.3 335 Transport by truck 0.0 0.9 0.2 1.1 425 Civic‐ social‐ professional‐ and similar org 0.0 0.5 0.6 1.0 330 Retail Stores ‐ Miscellaneous 0.0 0.3 0.7 0.9 400 Individual and family services 0.0 0.0 0.8 0.8 367 Legal services 0.0 0.5 0.2 0.8 354 Monetary authorities and depository credit intermed. 0.0 0.4 0.4 0.8 323 Retail Stores ‐ Building material and garden suppl. 0.0 0.2 0.6 0.8 426 Private household operations 0.0 0.0 0.7 0.7 411 Hotels and motels‐ including casino hotels 0.0 0.3 0.4 0.7 388 Services to buildings and dwellings 0.0 0.5 0.2 0.7 360 Real estate establishments 0.0 0.2 0.4 0.7 327 Retail Stores ‐ Clothing and clothing accessories 0.0 0.2 0.5 0.7 325 Retail Stores ‐ Health and personal care 0.0 0.2 0.5 0.7 20 Extraction of oil and natural gas 0.0 0.6 0.1 0.7 382 Employment services 0.0 0.4 0.1 0.6 328 Retail Stores ‐ Sporting goods‐ hobby‐ book and mu 0.0 0.2 0.4 0.6 326 Retail Stores ‐ Gasoline stations 0.0 0.1 0.5 0.6 39 Maint & repair construct of nonresident structures 0.0 0.4 0.2 0.6 417 Commercial and industrial machinery and equipment 0.0 0.5 0.0 0.5 386 Business support services 0.0 0.3 0.1 0.5 368 Accounting‐ tax preparation‐ bookkeeping‐ and payroll 0.0 0.4 0.1 0.5 357 Insurance carriers 0.0 0.1 0.4 0.5 419 Personal care services 0.0 0.0 0.4 0.4 399 Child day care services 0.0 0.0 0.4 0.4 395 Home health care services 0.0 0.0 0.4 0.4 381 Management of companies and enterprises 0.0 0.3 0.1 0.4 356 Securities‐ commodity contracts‐ investments‐ and 0.0 0.1 0.3 0.4 351 Telecommunications 0.0 0.2 0.2 0.4 321 Retail Stores ‐ Furniture and home furnishings 0.0 0.2 0.2 0.4 427 US Postal Service 0.0 0.1 0.2 0.3 409 Amusement parks‐ arcades‐ and gambling industries 0.0 0.0 0.3 0.3 396 Medical and diagnostic labs and outpatient and other 0.0 0.0 0.3 0.3 392 Private junior colleges‐ colleges‐ universities‐ a 0.0 0.0 0.3 0.3 322 Retail Stores ‐ Electronics and appliances 0.0 0.1 0.2 0.3 99 Wood windows and doors and millwork manufacturing 0.0 0.3 0.0 0.3 432 Other state and local government enterprises 0.0 0.1 0.2 0.2 Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Secondary Employment Impacts of Red Plan Construction on the Duluth‐Superior MSA, 2008 Ranked by Total Impact IMPLAN Industry Direct Indirect Induced Total Sector 424 Grantmaking‐ giving‐ and social advocacy org 0.0 0.0 0.2 0.2 421 Dry‐cleaning and laundry services 0.0 0.0 0.1 0.2 418 Personal and household goods repair and maintenance 0.0 0.1 0.0 0.2 415 Car washes 0.0 0.1 0.1 0.2 410 Other amusement and recreation industries 0.0 0.0 0.2 0.2 401 Community food‐ housing‐ and other relief services 0.0 0.0 0.2 0.2 393 Other private educational services 0.0 0.0 0.2 0.2 391 Private elementary and secondary schools 0.0 0.0 0.2 0.2 387 Investigation and security services 0.0 0.1 0.0 0.2 377 Advertising and related services 0.0 0.1 0.1 0.2 365 Commercial and industrial machinery and equipment 0.0 0.2 0.0 0.2 358 Insurance agencies‐ brokerages‐ and related activi 0.0 0.0 0.1 0.2 339 Couriers and messengers 0.0 0.1 0.1 0.2 338 Scenic and sightseeing transportation and support 0.0 0.1 0.1 0.2 336 Transit and ground passenger transportation 0.0 0.1 0.2 0.2 31 Electric power generation‐ transmission‐ and distribution 0.0 0.1 0.1 0.2 430 * Not unique commod (S&LG passenger transit) 0.0 0.0 0.0 0.1 423 Religious organizations 0.0 0.0 0.1 0.1 422 Other personal services 0.0 0.0 0.1 0.1 420 Death care services 0.0 0.0 0.1 0.1 412 Other accommodations 0.0 0.0 0.1 0.1 407 Fitness and recreational sports centers 0.0 0.0 0.1 0.1 404 Promoters of performing arts and sports and agents 0.0 0.0 0.0 0.1 403 Spectator sports companies 0.0 0.0 0.1 0.1 402 Performing arts companies 0.0 0.0 0.1 0.1 390 Waste management and remediation services 0.0 0.1 0.0 0.1 389 Other support services 0.0 0.0 0.0 0.1 384 Office administrative services 0.0 0.1 0.0 0.1 380 All other miscellaneous professional‐ scientific‐ 0.0 0.1 0.0 0.1 379 Veterinary services 0.0 0.0 0.1 0.1 375 Environmental and other technical consulting ser. 0.0 0.0 0.0 0.1 374 Management‐ scientific‐ and technical consulting s 0.0 0.1 0.0 0.1 372 Computer systems design services 0.0 0.1 0.0 0.1 371 Custom computer programming services 0.0 0.1 0.0 0.1 364 Video tape and disc rental 0.0 0.0 0.1 0.1 363 General and consumer goods rental except video tap 0.0 0.0 0.1 0.1 362 Automotive equipment rental and leasing 0.0 0.0 0.0 0.1 359 Funds‐ trusts‐ and other financial vehicles 0.0 0.0 0.1 0.1 355 Nondepository credit intermediation and related ac 0.0 0.0 0.1 0.1 348 Radio and television broadcasting 0.0 0.1 0.1 0.1 346 Motion picture and video industries 0.0 0.0 0.1 0.1 342 Periodical publishers 0.0 0.0 0.0 0.1 341 Newspaper publishers 0.0 0.1 0.1 0.1 340 Warehousing and storage 0.0 0.0 0.0 0.1 333 Transport by rail 0.0 0.1 0.0 0.1 228 Material handling equipment manufacturing 0.0 0.1 0.0 0.1 213 Other commercial and service industry machinery ma 0.0 0.1 0.0 0.1 149 Other plastics product manufacturing 0.0 0.1 0.0 0.1 116 Asphalt paving mixture and block manufacturing 0.0 0.1 0.0 0.1 115 Petroleum refineries 0.0 0.1 0.0 0.1 98 Reconstituted wood product manufacturing 0.0 0.0 0.0 0.1 97 Engineered wood member and truss manufacturing 0.0 0.1 0.0 0.1 Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Secondary Employment Impacts of Red Plan Construction on the Duluth‐Superior MSA, 2008 Ranked by Total Impact IMPLAN Industry Direct Indirect Induced Total Sector 95 Sawmills and wood preservation 0.0 0.1 0.0 0.1 16 Commercial logging 0.0 0.1 0.0 0.1 14 Animal production‐ except cattle and poultry and e 0.0 0.0 0.1 0.1 12 Dairy cattle and milk production 0.0 0.0 0.1 0.1 10 All other crop farming 0.0 0.1 0.0 0.1 431 * Not unique commod (S&LG electricity) 0.0 0.0 0.0 0.0 429 Other Federal Government enterprises 0.0 0.0 0.0 0.0 416 Electronic and precision equipment repair and main 0.0 0.0 0.0 0.0 408 Bowling centers 0.0 0.0 0.0 0.0 406 Museums‐ historical sites‐ zoos‐ and parks 0.0 0.0 0.0 0.0 405 Independent artists‐ writers‐ and performers 0.0 0.0 0.0 0.0 385 Facilities support services 0.0 0.0 0.0 0.0 383 Travel arrangement and reservation services 0.0 0.0 0.0 0.0 378 Photographic services 0.0 0.0 0.0 0.0 376 Scientific research and development services 0.0 0.0 0.0 0.0 373 Other computer related services‐ including facilit 0.0 0.0 0.0 0.0 370 Specialized design services 0.0 0.0 0.0 0.0 366 Lessors of nonfinancial intangible assets 0.0 0.0 0.0 0.0 353 Other information services 0.0 0.0 0.0 0.0 352 Data processing‐ hosting‐ ISP‐ web search portals 0.0 0.0 0.0 0.0 350 Internet publishing and broadcasting 0.0 0.0 0.0 0.0 349 Cable and other subscription programming 0.0 0.0 0.0 0.0 347 Sound recording industries 0.0 0.0 0.0 0.0 345 Software publishers 0.0 0.0 0.0 0.0 344 Directory‐ mailing list‐ and other publishers 0.0 0.0 0.0 0.0 343 Book publishers 0.0 0.0 0.0 0.0 337 Transport by pipeline 0.0 0.0 0.0 0.0 334 Transport by water 0.0 0.0 0.0 0.0 332 Transport by air 0.0 0.0 0.0 0.0 317 All other miscellaneous manufacturing 0.0 0.0 0.0 0.0 316 Musical instrument manufacturing 0.0 0.0 0.0 0.0 315 Gasket‐ packing‐ and sealing device manufacturing 0.0 0.0 0.0 0.0 314 Sign manufacturing 0.0 0.0 0.0 0.0 313 Office supplies (except paper) manufacturing 0.0 0.0 0.0 0.0 311 Sporting and athletic goods manufacturing 0.0 0.0 0.0 0.0 310 Jewelry and silverware manufacturing 0.0 0.0 0.0 0.0 309 Dental laboratories manufacturing 0.0 0.0 0.0 0.0 308 Ophthalmic goods manufacturing 0.0 0.0 0.0 0.0 306 Surgical appliance and supplies manufacturing 0.0 0.0 0.0 0.0 302 Showcase‐ partition‐ shelving‐ and locker mfg 0.0 0.0 0.0 0.0 301 Office furniture and custom architectural woodwork 0.0 0.0 0.0 0.0 297 Nonupholstered wood household furniture mfg 0.0 0.0 0.0 0.0 295 Wood kitchen cabinet and countertop manufacturing 0.0 0.0 0.0 0.0 290 Ship building and repairing 0.0 0.0 0.0 0.0 286 Other aircraft parts and auxiliary equipment mfg 0.0 0.0 0.0 0.0 284 Aircraft manufacturing 0.0 0.0 0.0 0.0 283 Motor vehicle parts manufacturing 0.0 0.0 0.0 0.0 280 Truck trailer manufacturing 0.0 0.0 0.0 0.0 278 Heavy duty truck manufacturing 0.0 0.0 0.0 0.0 275 All other miscellaneous electrical equipment and c 0.0 0.0 0.0 0.0 271 Primary battery manufacturing 0.0 0.0 0.0 0.0 267 Motor and generator manufacturing 0.0 0.0 0.0 0.0 Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Secondary Employment Impacts of Red Plan Construction on the Duluth‐Superior MSA, 2008 Ranked by Total Impact IMPLAN Industry Direct Indirect Induced Total Sector 266 Power‐ distribution‐ and specialty transformer man 0.0 0.0 0.0 0.0 257 Software‐ audio‐ and video media for reproduction 0.0 0.0 0.0 0.0 256 Watch‐ clock‐ and other measuring and controlling 0.0 0.0 0.0 0.0 253 Electricity and signal testing instruments mfg 0.0 0.0 0.0 0.0 247 Other electronic component manufacturing 0.0 0.0 0.0 0.0 246 Printed circuit assembly (electronic assembly) man 0.0 0.0 0.0 0.0 240 Audio and video equipment manufacturing 0.0 0.0 0.0 0.0 238 Broadcast and wireless communications equipment ma 0.0 0.0 0.0 0.0 234 Electronic computer manufacturing 0.0 0.0 0.0 0.0 230 Other general purpose machinery manufacturing 0.0 0.0 0.0 0.0 226 Pump and pumping equipment manufacturing 0.0 0.0 0.0 0.0 222 Turbine and turbine generator set units mfg 0.0 0.0 0.0 0.0 220 Cutting tool and machine tool accessory mfg 0.0 0.0 0.0 0.0 218 Metal cutting and forming machine tool mfg 0.0 0.0 0.0 0.0 215 Heating equipment (except warm air furnaces mfg 0.0 0.0 0.0 0.0 214 Air purification and ventilation equipment mfg 0.0 0.0 0.0 0.0 207 Other industrial machinery manufacturing 0.0 0.0 0.0 0.0 206 Mining and oil and gas field machinery mfg 0.0 0.0 0.0 0.0 205 Construction machinery manufacturing 0.0 0.0 0.0 0.0 202 Other fabricated metal manufacturing 0.0 0.0 0.0 0.0 201 Fabricated pipe and pipe fitting manufacturing 0.0 0.0 0.0 0.0 198 Valve and fittings other than plumbing mfg 0.0 0.0 0.0 0.0 197 Coating‐ engraving‐ heat treating and allied active. 0.0 0.0 0.0 0.0 195 Machine shops 0.0 0.0 0.0 0.0 194 Spring and wire product manufacturing 0.0 0.0 0.0 0.0 193 Hardware manufacturing 0.0 0.0 0.0 0.0 187 Ornamental and architectural metal products mfg 0.0 0.0 0.0 0.0 186 Plate work and fabricated structural product mfg 0.0 0.0 0.0 0.0 185 Handtool manufacturing 0.0 0.0 0.0 0.0 182 Custom roll forming 0.0 0.0 0.0 0.0 180 Nonferrous metal foundries 0.0 0.0 0.0 0.0 179 Ferrous metal foundries 0.0 0.0 0.0 0.0 178 Nonferrous metal (except copper and aluminum) roll 0.0 0.0 0.0 0.0 171 Steel product manufacturing from purchased steel 0.0 0.0 0.0 0.0 170 Iron and steel mills and ferroalloy manufacturing 0.0 0.0 0.0 0.0 168 Mineral wool manufacturing 0.0 0.0 0.0 0.0 166 Cut stone and stone product manufacturing 0.0 0.0 0.0 0.0 164 Lime and gypsum product manufacturing 0.0 0.0 0.0 0.0 163 Other concrete product manufacturing 0.0 0.0 0.0 0.0 162 Concrete pipe‐ brick‐ and block manufacturing 0.0 0.0 0.0 0.0 161 Ready‐mix concrete manufacturing 0.0 0.0 0.0 0.0 152 Other rubber product manufacturing 0.0 0.0 0.0 0.0 150 Tire manufacturing 0.0 0.0 0.0 0.0 147 Urethane and other foam product (except polystyrene) 0.0 0.0 0.0 0.0 142 Plastics packaging materials and unlaminated film 0.0 0.0 0.0 0.0 141 All other chemical product and preparation mfg 0.0 0.0 0.0 0.0 138 Soap and cleaning compound manufacturing 0.0 0.0 0.0 0.0 136 Paint and coating manufacturing 0.0 0.0 0.0 0.0 126 Other basic organic chemical manufacturing 0.0 0.0 0.0 0.0 122 Synthetic dye and pigment manufacturing 0.0 0.0 0.0 0.0 121 Industrial gas manufacturing 0.0 0.0 0.0 0.0 114 Support activities for printing 0.0 0.0 0.0 0.0 Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth

Secondary Employment Impacts of Red Plan Construction on the Duluth‐Superior MSA, 2008 Ranked by Total Impact IMPLAN Industry Direct Indirect Induced Total Sector 113 Printing 0.0 0.0 0.0 0.0 107 Paperboard container manufacturing 0.0 0.0 0.0 0.0 105 Paper mills 0.0 0.0 0.0 0.0 103 All other miscellaneous wood product manufacturing 0.0 0.0 0.0 0.0 102 Prefabricated wood building manufacturing 0.0 0.0 0.0 0.0 100 Wood container and pallet manufacturing 0.0 0.0 0.0 0.0 94 Other leather and allied product manufacturing 0.0 0.0 0.0 0.0 93 Footwear manufacturing 0.0 0.0 0.0 0.0 91 Apparel accessories and other apparel mfg 0.0 0.0 0.0 0.0 90 Other cut and sew apparel manufacturing 0.0 0.0 0.0 0.0 89 Womens and girls cut and sew apparel mfg 0.0 0.0 0.0 0.0 88 Mens and boys cut and sew apparel manufacturing 0.0 0.0 0.0 0.0 86 Apparel knitting mills 0.0 0.0 0.0 0.0 85 All other textile product mills 0.0 0.0 0.0 0.0 84 Textile bag and canvas mills 0.0 0.0 0.0 0.0 71 Breweries 0.0 0.0 0.0 0.0 70 Soft drink and ice manufacturing 0.0 0.0 0.0 0.0 69 All other food manufacturing 0.0 0.0 0.0 0.0 66 Coffee and tea manufacturing 0.0 0.0 0.0 0.0 63 Cookie‐ cracker‐ and pasta manufacturing 0.0 0.0 0.0 0.0 62 Bread and bakery product manufacturing 0.0 0.0 0.0 0.0 59 Animal (except poultry) slaughtering‐ rendering‐ a 0.0 0.0 0.0 0.0 56 Cheese manufacturing 0.0 0.0 0.0 0.0 55 Fluid milk and butter manufacturing 0.0 0.0 0.0 0.0 53 Frozen food manufacturing 0.0 0.0 0.0 0.0 51 Confectionery manufacturing from purchased chocolate 0.0 0.0 0.0 0.0 42 Other animal food manufacturing 0.0 0.0 0.0 0.0 40 Maint & repair construct of residential structures 0.0 0.0 0.0 0.0 38 Construct other new residential structures 0.0 0.0 0.0 0.0 33 Water‐ sewage and other treatment and delivery sys 0.0 0.0 0.0 0.0 32 Natural gas distribution 0.0 0.0 0.0 0.0 30 Support activities for other mining 0.0 0.0 0.0 0.0 29 Support activities for oil and gas operations 0.0 0.0 0.0 0.0 27 Mining and quarrying other nonmetallic minerals 0.0 0.0 0.0 0.0 26 Mining and quarrying sand‐ gravel‐ clay‐ and ceramic 0.0 0.0 0.0 0.0 25 Mining and quarrying stone 0.0 0.0 0.0 0.0 23 Mining copper‐ nickel‐ lead‐ and zinc 0.0 0.0 0.0 0.0 22 Mining iron ore 0.0 0.0 0.0 0.0 19 Support activities for agriculture and forestry 0.0 0.0 0.0 0.0 18 Commercial hunting and trapping 0.0 0.0 0.0 0.0 17 Commercial Fishing 0.0 0.0 0.0 0.0 15 Forestry‐ forest products‐ and timber tract production 0.0 0.0 0.0 0.0 13 Poultry and egg production 0.0 0.0 0.0 0.0 11 Cattle ranching and farming 0.0 0.0 0.0 0.0 6 Greenhouse‐ nursery‐ and floriculture production 0.0 0.0 0.0 0.0 4 Fruit farming 0.0 0.0 0.0 0.0 3 Vegetable and melon farming 0.0 0.0 0.0 0.0 2 Grain farming 0.0 0.0 0.0 0.0 1 Oilseed farming 0.0 0.0 0.0 0.0 Total 95.7 24.9 31.0 151.6

Bureau of Business and Economic Research Labovitz School of Business and Economics University of Minnesota Duluth